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CNVP Annual Report
Abbreviated version
2015
Connecting Natural Values & People Foundation - Netherlands
CNVP Annual Report Abbreviated version
2015
Table of Contents
Abbreviation .......................................................................................................... i
Foreword of the Foundation Supervisory Board .................................................... 1
Part I: Annual Report ............................................................................................ 2
1 Introduction ................................................................................................... 2
2 Executive Summary ........................................................................................ 2
3 Background and Context ................................................................................. 4
4 Project Progress and Results .......................................................................... 7
5 Business Development .................................................................................. 17
6 Human Resource Development and Internal Organisation ............................ 19
Part II: Abbreviated Annual Accounts ................................................................. 25
Introduction – CNVP Third Annual Accounts ....................................................... 25
Accounting Principles ......................................................................................... 31
Notes to the abbreviated Balance Sheet at 31 December 2015 ........................... 34
Notes to the abbreviated Statement of Financial Performance ........................... 40
Constitution of the Board .................................................................................... 46
Other Information ............................................................................................... 47
Auditor’s Report .................................................................................................. 48
This is the abbreviated version of our CNVP Annual 2015 report. CNVP obtained an
unqualified audit opinion for its financial accounts for 2015. In case a full version is desired
including the auditor opinion please do request a copy at CNVP ([email protected])
i
Abbreviation
ALCDF: Albanian Local Capacity Development Fund
APFO: Association of Private Forest Owners
BD: Business Development
CDI: Centre for Development Innovation
CFF: Connecting Family Forest project
CFP: Communal Forest and Pastures
CNVP: Connecting Natural Values & People
DBU: German Development Cooperation Agency
EBRD: European Bank for Reconstruction and Development
ECNC: Environnemental Centre for Nature Conservation
ESP: Environnemental Service Project
EU: European Union
EUTR: EU Timber Regulation
FLED: Forest for Local Economic Development project
FAO: Food and Agriculture Organisation of United Nations
FPUA: Forest and Pasture Users’ Association
GEF: UN Global Environmental Facility
GIZ: German Development Agency
IPA: Instrument for Pre-Accession
IUNC: International Union Nature Conservation
JFM: Joint Forest Management
KFA: Kosovo Forest Agency
KfW: German Investment Fund
LC: Land Consolidation
LGU: Local Government units
MAFRD: Ministry of Agriculture, Forestry and Rural Development
MAFWE: Ministry of Agriculture, Forestry and Water Economy
MoE: Ministry of Environment
MT: Management Team
NACFP: National Association of Communal Forests and Pastures
NAPFO: National Association of Private Forest Owners
NFI: National Forest Inventory
NGB: National Governance Body
NTFP: Non-Timber Forest Products
Nuffic: Netherlands Fellowship Programme
PEFC: Programme for Endorsement of Forest Certification
RD: Rural Development
RE: Renewable Energy
REFORD: Regional Centre for Forestry and Rural Development
SDC: Swiss Development Cooperation
Sida: Swedish International Development Agency
SFM: Sustainable Forest Management
SNV: SNV Netherlands Development Organisation
SSPDF: Strengthening Sustainable Private and Decentralised Forestry project
TREES: EU Project on Timber Regulation
UPFOA: Union of Private Forest Owners Association
UNDP: United Nations Development Programme
USAID: USA Development Agency
WB: World Bank
WWF: World Wildlife Fund
1
CNVP Annual Report 2015 Abbreviated version
Foreword of the Foundation Supervisory Board
Dear reader,
We hereby present you CNVP’s annual report on 2015. In this report we want to inform
those interested in our work on our activities and the organization.
CNVP is continuing its development as an organization. As an offspring of the Netherlands
Development Organization SNV in the Balkans, our strategy focuses on our work on
forestry and rural development, currently materializing in two main projects and several
smaller ones. The main projects in cooperation with Sida provide capacity building and
advisory services to our partners in the projects.
At the same time the region has seen intense developments with the influx of large
numbers of refugees through the so-called Balkan route, affecting Macedonia and partly
Albania. We have also seen unfavourable political developments in Kosovo and Macedonia,
hampering the progress of these countries towards development and possible EU
accession.
In this context we have continued our work and worked with over 187 organisations.
These partners include 6 ministries related to environment or natural resources, over 30
municipalities and 50 government organisations. Besides we close cooperate together and
provide capacity strengthening to 100 civil society organisation. Through our programme
we impact a total over 467,000 household. In this annual report you can read more in
detail the outcome and impact of our work, as well as our contacts with stakeholders and
partners.
We continue to deploy our strategy, in which we strive to widen our resource base and
financial partners, and continue to improve the quality of our work and renewable energy.
We also gradually strive to expand the programme in our current working areas and in the
wider Balkan region. The European Union has a large focus on rural development in which
increased attention and effort is given to renewable energy and climate change issue.
Forestry and other natural resources play an important role in this. It remains a challenge
yet to incorporate this in programmes in the Balkan, while increasingly effects of climate
change are noticed; flooding, extreme rainfall and erosion.
Where 2015 was a year of continued development, 2016 will bring us the opportunity to
evaluate and rethink our strategy, also in light of all the developments in the region. The
new strategy development process will also be lead by a new Executive Director, since the
current Director will leave CNVP after many years of leading its programmes and move to
Kiev for a new challenge.
These past years the organization and its staff are strengthened, so we look forward
towards the next step in development of our work and our contribution to the sustainable
development of natural resources in the Balkan region.
In 2015 the team of CNVP and our partners have closely cooperated to improve the
livelihoods of rural communities. We are grateful for the commitment and energy that we
have seen by all and hope to continue and step up our contribution in the coming years.
On behalf of the CNVP Foundation Supervisory Board,
Maarten Bremer, Chair Person
23 April 2016, The Hague
2
Part I: Annual Report
1 Introduction
The third annual report of CNVP reflects the developments in the 2015 against the annual
plan 2015 of CNVP. We remain committed in our programme and efforts to have an impact
on the livelihood of communities in rural areas and the sustainable management of natural
resources. To achieve sustainable development a proper use and sustainable management
of these resources and empowered organisations representing the communities and
functional related institutions are required. CNVP through the implementation of its
programme has contributed to this in the Balkan. Through our programme we impacted
467,000 households. We worked with over 180 organisations directly of which 6 ministries
in the region related to natural resources or environment and 50 government institutions
or agencies related to forestry, rural development, cadastre or environmental parks. We
cooperated with 31 municipalities, mainly in rural areas. Our main partners are the
associations, their networks, umbrella structures and civil society organisations (100 in
total). These organisations have in total about 68,000 members who directly benefiting.
This report provides the results achieved during 2015. The report is made for CNVP overall
including the inputs from the different countries. The annual accounts of CNVP correspond
to the financial year 1 January 2015 till 31 December 2015.
The purpose of this report is to review the results achieved and progress made regarding
our priorities and strategy. It serves to reflect and learn from the progress made and it will
help defining the priorities that need to be addressed in the coming period. Specific
attention is given to the business development of CNVP within 2015. The report also
includes the annual accounts and serves to obtain an insight in the financial situation of
CNVP.
2 Executive Summary
In 2015 we consolidated our programme with full implementation of the CNVP projects
financed by the Swedish Government through Sida in Albania FLED and in Kosovo SSPDF.
Next to these projects CNVP implemented a project on sustainable forest standards and
forest certification with PEFC in Macedonia, a regional EU project in joint cooperation with
our partners on capacity strengthening for the EU Timber Regulation and a project on
support on Land Consolidation in Macedonia with FAO. Through our programme we
impacted 467,000 households and worked directly with 187 partners engaged and
benefitting from the programme.
The projects are all in proper implementation. Through the programme CNVP is able to
achieve the results expected. On land tenure results were made in communal forest
registration and user right contracts (FLED). People obtained long term rights on the
management and use of their communal forests in user rights contracts. Traditional user
identification and inclusion of local communities in degraded coppice forest management
(SSPDF), while voluntary land consolidation is practiced in the FAO project in Macedonia.
Sustainable natural resource management practices and standards are applied. The PEFC
project in Macedonia established a national multi-stakeholder body that is working on the
national standards for sustainable forest management to be used for certification. The EU
TREES project is identifying and developing practices to reduce marketing of illegal wood
3
in the EU. Small strips coppice forest is practiced with local communities and municipalities
in degraded forest to obtain firewood and regenerate forests in Kosovo (SSPDF). This
practice is closing the gap between need and production and reducing illegal logging. In
the FLED project, in cooperation with the FPUAs, users of communal forests are trained on
farmer forest practices. Farmer forests developments are monitored with the Federations
using permanent plots.
The use of wood biomass for heating is replicated in public buildings using the previous
experience. Local people and associations are involved in the sustainable production of
wood biomass (SSPDF). In Albania investigations are made using fast growing species for
biomass production, while the regenerated communal forest increasingly is providing
firewood through thinning.
The support of (Forest) Producer Groups continues. The FLED project in a participatory
review defined different models for producer groups to grow from small informal groups in
to wider producer organisations and networks. This allows better marketing, sales and
service provision to producers. Training support and representation on fairs provide
marketing and sales connections. In Kosovo application of growing, processing and
marketing berries is supported, helping farmers to increase their off farm income.
Linkages are promoted between producer groups and forest associations to assure
sustainable collection and harvest.
The forest associations cooperate at local, national and regional level. Their structures
increasingly become more representative of family forest families, including women. This
is also reflected in an increased gender balance in boards and governance positions.
Service provision by the associations is supported to strengthen the capacity of
associations at regional and national level. With selected municipalities in SSPDF project
participatory planning and engagement of local communities is established for degraded
forest areas. The first forest management practices in a few cadastral areas are in
implementation, supported by the forest agency.
CNVP supports ongoing reforms in forestry and rural development in its cooperation with
its partners. Allowing more management and harvesting rights to private forest owners is
proposed in Kosovo. Strengthening the role of communal forestry and the responsibilities
and roles of FPUAs and municipalities are taking place in Albania. Incorporation of forestry
in rural development is addressed with REFORD and local organisations throughout the
region.
To be able to sustain our programme and work on the longer term business development
is a top priority. The effort made on business development resulted in an increase and
wider variety of applications. To further strengthen our BD we are making an additional
investment for business development; increased focus (as reflected also in our 2016 plan),
specific BD training and recruiting addition staff for business development.
Our overall advisory performance was satisfactory, with a realisation of 96%. This is a bit
lower than planned due to the postponed recruitment of advisor staff in Albania. The total
staff increased to 26 people with the recruitment of an advisor representing CNVP in
Montenegro.
During 2015 the adjustment of the governance structure of CNVP is prepared. From 2016
onwards there will be a Board of Directors, comprised of the Executive Director and a
Supervisory Board. This is reflecting better the actual situation of day to day management.
The budget realisation of the approved revised budget is satisfactory. The expenditure is
86% of the plan. The financial result of 2015 is 175,830 Euro. The effective result is a gain
of 1,909 Euro not taking in to account the project asset investments.
4
3 Background and Context
The requirements of EU are in general supportive and often used by gradual strengthened
civil society groups such as the forestry associations in their effort for forestry and rural
development reforms. The general focus of governments on rural economic development
and supporting producer groups is supportive to this. However the inclusion of forestry in
such programmes, like IPARD (Instrument for Pre-Accession for Agriculture and Rural
Development) is very limited. The EU policy has an increased focus on forestry linked to
renewable energy and climate change in its policy. This is not yet reflected in concrete
measures in the country programmes. Also inclusion of civil society and addressing
environmental issues is despite increased awareness and understanding a struggle. In
addition the political conflicts and high corruption in the region are a major concern. As a
result the international community gives increased attention to governance and
democratic process.
In Albania European integration is the first priority for the Albanian government, which
pays particular attention to related challenges in the rule of law, public administration and
fundamental rights areas. Albania is elaborating the new Strategy for Development and
Integration 2014 – 2020 and other sectorial strategies, ensuring the coherence of such
documents with IPA II.
Rural development policies in Albania aim at increasing productivity and competitiveness
to reduce rural poverty and sustain natural resources, especially forests. The ongoing
reforms in forestry and environment sector are still in process. During 2015 MoE (Ministry
of Environment) declared, that all State forest will transfer in ownership to the newly
created municipalities. These must establish management structures with staff according
to the forest and pasture areas transferred. Only protected areas will remain State
properties managed by the National Agency of Protected Areas.
The draft forest law is still under discussion by the parliamentarian commissions due to
many comments of civil society and private sector. It is expected to pass parliament early
2016. The long time needed preparing the new forest law created many problems between
different stakeholders in fulfilling their roles and responsibilities in forest management. At
the end of 2015, state forest service and extension service are abolished (all staff fired)
since all State forests will be transfer to municipalities early 2016. This created an
institutional vacuum in the sector and no services are provided to the municipalities and
Forest and Pastures Users’ Associations (FPUA).
The new territorial-administrative division, took place after local elections in June 2015
and it is under gradual implementation by setting up new administrative structures in 61
new municipalities and adapting the legal acts (including forest law) according to the new
situation. This reform it is expected to strengthen decentralization of natural resources
management. Other challenges remain; sustainable management of forest and pastures
through recognizing the traditional users and their associations, registration of all forest
and pasture land, strengthening and financial sustainability of the FPUAs and the
integration of forestry in rural development with financial support schemes.
The Environmental Service Project (ESP) is launched by Ministry in February 2015. During
the year 2015 no progress is made, just some consultancy services. The calls for grants
for FPUA expected for the second half of the year is postponed for 2016 because of delay
of forest law approval. This is important since it is in line with the Sida project
implemented by CNVP, strengthening FPUAs.
Kosovo as potential candidate for EU membership has signed Stabilisation and Association
Agreement in October 2015. The expectations are that it will help Kosovo make much
needed reforms, increase investment opportunities, increase jobs and put country on the
path of a sustainable economic growth. It will also help Kosovo with the implementation of
reforms to achieve the adoption of European standards. The agreement covers a wide
5
variety of areas including political dialogue, justice and cooperation in sectors of
education, employment, energy and environment. In order to support the necessary
reforms, the EU provides Pre-accession Assistance through programme and project
support1.
The overall political process in Kosovo is difficult. Relations with Serbia and ethnic groups
are improving. This is on return giving tensions between certain opposition parties against
this process and the government.
The Renewable Energy Action Plans (REAP), approved by the government calls for a 25%
renewable energy target by 2020. Recent studies found considerable potential for biomass
(for both heating purposes and as moderate potential for power generation).
The process of reforms in forestry are stagnating also due to the political tensions. The
draft forest law is submitted to the Minister of Ministry of Agriculture, Forestry and Rural
Development (MAFRD). Consultation is made with private forestry stakeholders but the
request to simplify procedures in private forest are not included yet. It is agreed to
establish a multi-stakeholder work group to address these issues. The draft law is still in
discrepancies with forest policies and strategies related the systems of joint forest
management, as a tool to decrease the illegality in sector, increase the employment of
rural communities and revenues from the sector.
Macedonia undergoes a political crises. The cooperation of government with opposition is
not existing, democratic functioning of institutions is weak, while corruption, fraud and
bribery are high. The EU reports Macedonia is having problems with assuring free media,
political influence on the court system and absence of the democracy. The economic
situation with growing depths and high government related employment is worrying. The
crises was mediated with EU and USA involvement and resulted with the agreement to call
for elections earliest at April 2016 if all preconditions for democracy are respected.
The negative effects of the forest law changes in 2014 are noticed. There was a lack of
firewood on the market and prices went to almost 70 €/m3 in November. The service to
private forest, again only by the State, is weak and not satisfactory. Subsidies for private
forests from the funds at the Ministry in 2015 are zero. The RD (Rural Development)
programme includes forestry measures: geodetic works to mark private forests, cost for
timber marking and forestry equipment. But bureaucracy is high and conditions difficult,
hence only a small number of forest owners applied, using NAPFO (National Association of
Private Forest Owners) support.
Donor support to Macedonia is mainly focused on rule of law, democracy and media
development. Some support in environment and nature exists from SDC (Swiss
Development Cooperation) but mainly through their implementing agencies. The EU funds
are expected to continue in the future. Focus on forestry will remain mainly through
environment protection. Besides the SDC programme there were limited ongoing forestry
projects in Macedonia. The Macedonian Ecological Society implemented financed by
Germany a nature related project focusing on forest management practices. FAO is
currently implementing a project including a household survey on wood consumption in
the country and the region, but cooperating mainly with local consultants from the Forest
Faculty.
In Montenegro the EU integration process continues. Until end of 2015, 18 chapters of
EU acguis have been opened and criteria for their closing set, while two are temporarily
closed. The chapters on Agriculture and RD (11) and Environment (27), Energetics (15)
and Regional Development (22) have not been opened yet. In terms of the progress, lack
of administrative and human capacities are main issues. Concerning the agriculture and
1 http://www.consilium.europa.eu/press-releases-pdf/2015/10/40802204201_en_635821655400000000.pdf
6
RD, most criteria have already been fulfilled and opening of the negotiations is expected in
2016.
The Forest law (2010) has been implemented to a very low extent. A number of
provisions, related to private forests have not been implemented at all. A change of the
Forest law has been adopted in 2015 by the Government and endorsed by the Parliament.
Some changes for private forests are essential, such as rationalisation of administration
procedures after harvesting and forest plans for private forests only on request by the
forest owner. The Forestry strategy (2014) has not been implemented, mainly due to lack
of financial means. The associations of private forest owners at national level reregistered
into a new Union of Private Forest Owners Associations (UPFOA) in order to get a formally
recognized organization that could legally represent the private forest owners’ interests in
Montenegro.
A renewable energy use action plan (2014 – 2020) has been adopted, including wood
biomass. The Strategy for agriculture and rural areas for 2014 – 2020, under IPARD II,
has been adopted. The expected IPARD II programme will start in 2017, before the start
of the implementation of IPARD II program in 2016 will be implemented certain measures
within the IPARD-like program.
The focus of donors is at EU integration, within this limited inputs is related to forestry, RD
and environment. Only two small European Bank for Reconstruction and Development
(EBRD) projects (studies on forest biomass use and forest and wood processing sector)
finished, while a Natura 2000 network project from EU will start in April 2016.
7
4 Project Progress and Results
The programme of CNVP has a few larger projects and several smaller projects or
assignments. The implementation of the projects during 2015 is completed as planned.
The inception phase of the FLED project in Albania and the SSPDF project in Kosovo are
completed, from January 2015 onwards full project implementation started. Care has been
taken to complete all activities within the time frames. The reporting in this chapter is
based on the projects, some are cross country and have input from different countries.
The following projects were under implementation during 2015:
● Sida FLED: Forest for Local Economic Development
● Sida SSPDF: Strengthening Sustainable Private and Decentralised Forest
Development in Kosovo
● PEFC: Forest Certification and SFM standards in Macedonia
● EU TREES: Timber Regulation Enforcement to protect European wood Sector from
criminal infiltration in Europe
● FAO Land Consolidation project in Macedonia
Sida FLED: Forest for Local Economic Development in Albania
Duration: 2014-2018
Area: Albania
Donor: Sida
Total budget planned: 5,710,027 € (Sida: 4,948,022 €, CNVP contribution 762,005 €)
Total budget realised: 1,649,641 € (Sida: 1,404,343 €, CNVP contribution 245,298€)
Budget 2015 planned: 1,362,700 €
Budget realised 2015: 1,340,873 € (Sida: 1,147,563 €, CNVP contribution 749,782€)
Total advisor days planned: 7,700 Total advisor days realised: 3,087
Advisor days, 2015 planned: 2,293 Advisor days, 2015 realised: 2,312
The FLED project is a 4 year project and builds on the previous projects for communal
forestry of Sida and CNVP. It will further strengthen the capacity of especially the FPUAs
and their structures and the local government units, strengthening linkages between
stakeholders for sustainable communal forestry and pastures management and improving
the environment. FLED project implementation is in the second year. The first project year
was completed in July 2015. The progress report, project audit and the second project
year plan (August 2015 to July 2016) are made and approved by Sida.
The project progress according to outcome areas is as follows:
Outcome area 1: Improved decentralised Communal Forest and Pasture area
management and secured property/user rights in existing and new target communes
The main focus is strengthening the capacity of the target local government units to
manage communal forest and pastures in close collaboration with FPUAs. 24 target
communes in 9 regions have prepared annual utilization plans and most of them achieved
to collect a certain amount of fees and tariffs for forest products and looking for other
funding opportunities. 4 communes finished the properties registration process (about
24,500 ha), while 7 other are under the process of registration. In 24 selected villages of
the target communes the process of users mapping is continuing. Through the property
8
registration at communes and especially the user rights it is increasing the land tenure and
management security for the people.
Regional (9) and one national core groups are reorganized, new members have joined.
Several meetings and trainings were held related CFP (Communal Forest Management)
management. This core groups are instrumental in knowledge development and
dissemination.
Table 1 Properties registration progress during 2015
# LGU
# of
villages
(cadastral
zones)
Area
transferred
(in ha)
Area
registered
cadastre
(in ha)
1
Golaj 11 10483 10483
2
Fajza 6 3468 3468
3
Rubik 10 6657 6657
4 Sllove 10 4000 4000
Total 37 24608 24608
Table 2 fees collection by communes in 2015
no Region Commune Total fee
amount
collected (Leke)
Reinvestment
fund (in
Leke)
1 Korça Vithkuq 800,000
2 Pustec 160,000
3 Dardhas 400,000
4 Berati Roshnik 690,000
5 Elbasan Qukes 150,000
6 Gjinar 1,000,000
7 Qender Librazhd 1,550,000
8 Gjirokaster Dropull I siperm 900,000 400,000
9 Qender Tepelen 1,700,400 400,000
10 Petran 3,000,000
Total 9,450,400 800,000
Outcome 2: Enhanced relevance and sustainability of FPUAs, Regional Federation and
National Federation
A critical reflection is made on the structures of FPUAs, Regional Federations, National
Federations (NACFP) and their functioning. A specific focus is given to independency from
Municipalities of FPUAs as NGOs. This is a concern from the past experience. Awareness
meetings at village level help building a democratic, transparent and participatory process
for elections of FPUAs boards.
FPUAs assure representing all users in their area
and most users are aware of their role as
members of FPUA and know their rights and
responsibilities. This reflects in improved CFM. In
12 new communes, users elected the village
commission that represents the village in general
meetings of FPUA. In general there is increased
number
(10-30%) of
Photo SEQ Photo \* ARABIC 1 Core
group activity Photo 1 Core group activity
Photo SEQ Photo \* ARABIC 2 FPUA village level users’ meeting
Photo 2 FPUA village level users’ meeting
9
women in all meetings. This improved functioning of FPUAs being a permanent structure
in the new municipalities; representing traditional users and playing their role in CFM.
As the result of implemented activities FPUAs in target regions are more aware on gender
issues, on organization management and functioning. Elections in FPUA boards are
expected to bring more positive energy and involvement of communities in sustainable
management of natural resources. There is still a lot to be done towards strengthening the
target FPUAs especially in relations with the new municipality administration. The roles
and cooperation need to be re-organised, requiring training and capacity building.
All regional and national Federations have identified their areas of service provision and
prepared their working plans for further development.
Outcome 3: Forest and NTFP value chains (further) developed and strengthened
FLED started with a review related to representation of producer groups. It included the
governance principles, CFM in relation to NTFP (Non-Timber Forest Products) production,
relations between producer groups and FPUA/Local Government Unit, payment of fees &
tariffs in case forest produce is collected from Communal Forest and Pastures areas,
benefit-sharing mechanisms, etc. The review
provided better understanding of the existing
situation of the producers groups, potential
organizational development and identified
support needs. The review on Forest Producer
Groups included a survey involving 17 producer
groups/nut clubs, from 7 Regions, interviews
with key persons at regional and national level.
Additional 4 case studies of existing producer
groups are developed; producer group in
Gjirokaster, Marketing Organization of
producers in Korça, Agricultural cooperative
company in Diber, and Chestnut producer
group in Shkodra. The results of the review
process were disseminated and discussed with producers groups and stakeholders during
a National Conference organised in Tirana on October 22, 2015. The Producers Groups
Review gives a direction for our further support to producer groups. It will be used for
training, awareness meetings and other events. The review provided also insight in the
options of connecting producer groups with FPUAs and CFM. A critical issue is developing
as well the (fire) wood value chain and the role of FPUAs with this. Currently this is under
developed.
Due to trainings received by the project, some producers groups, like Diber, Gjinar, Prespa
and Shkodra are functioning well, presenting and selling their products (medicinal plants
and nuts) at local and national fairs organized during the year in Diber, Korça, Tirana,
Elbasan and Gjirokaster. Linked to this is better marketing and extended network, while
other producers groups receive training to learn from this experience.
The project will continue strengthening NTFP value chains supporting functioning and
structure of producer groups, support market opportunities, networks and assess
possibilities to enhance the quality of some forest products to adhere to EU standards.
Specific attention will also be given to developing the firewood value chain.
Outcome 4: Strengthening multi-objectives forest management approaches (incl. wood
biomass for renewable energy and carbon sequestration) and increase understanding and
acceptance to stakeholders, in particular of policy makers and regulators
Stakeholder’s involvement continues in discussions, training, practices, sharing of
experiences, knowledge brokering and evaluation of the different SFM (Sustainable Forest
Photo 3 Producer Groups at a Fair
10
Management) approaches in CFM. The existing and new (3) established sample plots (total
about 130) and different farmer forest models are used as demonstration sites for capacity
building on SFM, biomass and carbon calculation. Gradually SFM knowledge and practices
are developed in CFM. Federations, FPUAs and LGUs are supported to develop models for
sustainable management of communal forest and pastures, based on annual increment
(forests) and carrying capacity (pastures) and identifying and proposing measures for their
improvement. This involves also collection of fees, tariffs and reinvestment system (linked
with outcome 1).
Fire prevention awareness and practices is
reflected in the few cases of fire occurred
so far in the target areas of FLED. Several
project activities related to SFM are
achieved:
-Fast growing species models under testing
in Korça and Gjirokaster
-Commune Gjinar, Elbasan municipality
identified for piloting of using biomass for
renewable energy. Both commune and
association show great interest.
Different models for farmer forestry are
supported in different regions in different forest types as demonstration sites for both
farmers and forest technicians. About 70 existing forest sample plots are re-measured.
This is led by the core group comprising Forest Service specialists, Regional Federations,
commune technicians, forest specialists and forest users and village chairpersons. The
models are from families or village use and with different forest situations to provide a
variety of property right situations and forest conditions. It supports the development and
knowledge on SFM in CFM.
Outcome 5: Strengthening the institutional, policy & legal framework for communal
forestry with special attention to governance principles such as: accountability,
transparency, rule of law and participation/ social inclusion
In the past period the project support to National Federation (NACFP, National Association
Communal Forest and Pastures), Regional Federation and FPUAs made an active lobbying
possible for the institutionalisation and incorporation of roles and responsibilities of FPUA
and Federations in the forestry legislation. The new forest law is under preparation and
this is used as crucial moment to advocate and lobby for CFM.
The national and regional federation are very much engaged in current institutional and
policy reform. They participate active in
different meetings and discussion with
parliament, Prime minister, MoE, other
Ministries and donors. Through regional
activities support and advocacy is provided to
family forest owners and users addressing
important issues for family forestry. Concrete
suggestions are provide by the Federations
through written documents (letters and
memos), meetings (7) and round tables
including a public discussion with MoE at
national and region level. All supported by
FLED. The draft law acknowledges CFM
although the roles of FPUAs needs further
reflection.
Photo 4 Fast growing Paulownia in Korça
Photo 5 Lobbying, Parliament Deputies visit to Farmer Forest
11
NACFP becomes more capable on learning and sharing experiences at regional level
(Balkan and wider). Through regional activities support and advocacy is provided to family
forest owners and users addressing important issues for family forestry. As result through
REFORD (Balkan forestry association network) a statement addressing; ‘Local
Communities as drivers of forest management in the Balkan’ was provided to all
institutions in all REFORD member countries as part of joint lobbying for more
decentralized forest management and forestry inclusion in RD in the Balkan.
In the general FLED implementation several issues are dealt with. The local election
period (April-June 2015) and reorganization of local government from 375 to 61 units is a
concern. As usual, during election years the level of collection fees and tariffs drops down.
Adding this time the confusion created because of merging several communes in one
municipality, recognition of FPUAs as representatives of traditional users by the forest law,
and continuation of FPUAs functioning in their existing areas, despite of the area of new
municipalities. In the second half of this year, CNVP staff in collaboration with project
partners organised several meetings and discussions with new administration of
municipalities aiming to agree on how the project activities can be implemented in more
effective way and to increase impact in 24 new municipalities. This was very well accepted
by new Mayors and administration.
At the end of the year another issue came up by the government related to the
moratorium on forest harvesting that brought a lot of discussion between all actors of the
sector and further more delays on forest law approval. FLED continues to support the
Federations for their effort on strengthening CFM.
Sida SSPDF: Strengthening Sustainable Private and Decentralised Forestry in
Kosovo
Duration: 2014-2018
Area: Kosovo
Donor: Sida
Total budget: 3,497,696 € (Sida: 2.979.157 €, CNVP contribution 518,539 €)
Total budget realised: 902,120 € (Sida: 753,074 €, CNVP contribution 149,046 €)
Budget planned 2015: 768,300 €,
Budget realised: 696,587 € (Sida: 584,056€, CNVP contribution 112,531€)
Total advisor days planned: 5,400 Total advisor days realised: 1,857
Advisor days, 2015 planned: 1,340 Advisor days, 2015 realised: 1,364
The SSPDF project implementation is in the second year of project implementation. The
first project year was completed in July 2015. The progress report, project audit and the
second project year plan (August 2015 to July 2016) are made and approved by Sida.
The project focuses on three outcome areas; continuation and support on joint forest
management within decentralised forestry, with inclusion of local communities and local
APFO (Associations of Private Forest Owners); private forestry development through
strengthening NAPFO and APFO in their organisational capacity and representation and
supporting family forest owners in their sustainable forest management; and the
developments on sustainable wood biomass production and use for renewable
energy and opportunities for economic development.
Decentralised Forestry
Three municipalities (Gjakova, Istog and Novoberde) are selected on implementation of
Joint Forest Management (JFM) approach. Learning by doing and a participatory approach
12
is applied. In all three municipalities a municipality working group is engaged in the
process of the implementation of JFM. The focus was on participatory planning and
mapping and annual needs and forest potential calculations.
Photo 6 Participatory mapping
To avoid the legal constraints three Memoranda of Understanding are prepared and signed
by the selected municipalities, KFA (Kosovo Forest Agency) and CNVP. The Public Private
Partnership law is used for the small scale implementation of JFM. Three villages (cadastral
zones) are selected and in each village a commission of the community representatives is
established. The annual needs for firewood are calculated. The potential of annual
production from private and public forest is assessed. Based on the families’ request and
interest to participate in management of public forest, with all obligations for protections,
maintenance and annual fee payments for the produced firewood, the working group and
village commission decided to share the public forest between interested families.
A core group with main stakeholders (KFA, Municipality, APFO, environmental and civil
society organisation) is established in Peja region. SSPDF activities (family forest and JFM
related field visits and detailed presentations from project staff and NAPFO) helped core
group members to become familiar with the reasons of the gap between Annual Allowable
Cut and the real harvesting plan, as well with the main reasons of illegal cutting (about
90%) in Kosovo forest. They understand that the approach on JFM and simplified
procedures on harvesting permission for private forest management can lead in more
employment and legal forest management. Their increased capacities are demonstrated in
the national workshop on JFM and on harvest procedures for family forest. The national
workshop was organised by the core group in cooperation with the municipality of Istog
and supported by CNVP. Core group shared with the main stakeholders and policy makers
from Parliament, MAFRD and Ministry of Environment the legal constraints leading to
illegality in the sector. The workshop conclusions and recommendations proposed to the
participants and Minister of MAFRD are, to delegate more responsibility and rights on
forest management to forest owners and communities. SSPDF is through this gradually
increasing capacities, understanding and commitment for improved legal framework on
JFM and private forest management.
Photo 6 Coppice May 2012 Photo 8 Coppice July 2013
13
Some small implementation of silvicultural works on degraded coppice oak forest are
implemented in Gjakova and Novoberde with the support of MLWS. The degrade oak forest
rehabilitation interventions with strip coppicing from May 2012 are monitored in July 2013
and August 2015 in Manishince, Novoberde. Based on results of the trials on coppicing
with strips in degraded public oak coppice forest of previous project, KFA reflected
positively in the annual forest management plan and included in plan the coppicing in
strips in degraded oak coppice forest. This aims to improve forest structure in quality and
quantity leading to improve planning and realization of planned harvest.
Private Forestry
NAPFO is growing. During 2015 NAPFO joined international networks, as International
Family Forest Confederation and International Land Coalition. Geography of existing local
APFOs extended with four new local family forest owner association. A high interest to
participate on project implementation is showed in Mitrovica region, an inter-ethnic area.
The first association was established in Mitrovica municipality and the forest owners of
Leposaviq Municipality are involved in preparation procedures. The total membership is
just over 4,000 people. About 400 members are women and youth who also have their
representation in the management bodies.
In support to improve the functioning of NAPFO and their overall direction and mission, the
strategy for the private forest owners’ network of Kosovo is prepared. The strategy is
currently reviewed for approval by NAPFO. In addition to strengthening the capacity and
functioning of NAPFO and APFOs the project continued to support them with the self-
assessment of their organizations through the organizational assessment tool. Previous
assessments were reviewed and action plans with six APFOs realized. The NAPFO and
APFO communication and information service provision was further improved through the
development of webpage, publishing joint newsletter with Albania Federations “Jeto
Gjelber” (Green live) and information provision to media for awareness.
As part of the SSPDF a regional workshop was conducted in Peja, Kosovo with REFORD
and its members with focus on Family Forestry aspects; i) forestry reform, ii) RD forestry
practices such as Joint Forest Management and iii) service provision. It also facilitated
REFORD’s organisational strengthening and assembly meeting. The focus and interest of
NAPFO and APFO is to increase capacity and service delivery for their members. The
service delivery used by associations in the region has been reviewed and elaborated.
Regarding service provision to the NAPFO and APFO members on the best practices for
private forest management 20 participatory management plans for family forest were
prepared.
Photo 9 Coppice Sep 2015
14
Improving the legal and policy framework remains an important area of work of NAPFO
supported by SSPDF. The draft law is again under revision by MAFRD. Some information
meetings are realised between NAPFO representatives and the commission of parliament
dealing with economy, environment and agriculture, pointing out the non-considered
proposals of NAPFO-related to simplify procedures of harvesting in private forest on the
new draft law. The lobbying process regarding simplifying procedures in harvesting private
forest as the main requirements of the members of associations is now considered by
MAFRD. The Regional Core group established for SSPDF implementation informed Minister
about the discrepancies between policies and strategies on forest sector development,
related to the recommended systems of JFM, that need to be reflected in the new forest
law. This can service as a legal tool to decrease the illegality, increase the employment of
rural communities and revenues from the sector. After frequent negotiations between
NAPFO and Forestry Department of MARFD, it is agreed to establish a working group to
review and simplify the procedures for forest harvesting in private forest. The purpose is
to simplify the procedures and delegate more decision making to the forest owners and
their associations.
Wood biomass production
Despite increasing attention on wood biomass and use for renewable energy, proper
information and understanding is limited in Kosovo. SSPDF undertook a study on the
specifics of biomass used for RE. This was shared and discussed with relevant sectors:
energy, forestry, agriculture, economy and rural development to contribute to better
recognition in overall national policy, planning and utilisation of biomass.
In an effort to support the actual use of wood biomass for heating SSPDF works on
concrete examples for heating following on the experience of the previous project. A
feasibility study on innovative heating systems using woodchips in public building is
realised for the Doli School in Gjakova. This will replace the actual oil heating system with
biomass use resulting in clean energy and less annual expenditure. Although the
investment assessed in the feasibility study is higher than planned (30,000 € to 53,000 €)
the study highlights that the Financial Internal Rate of Return (IRR=18%) and Pay Back
Period (PBP=5.54 years) are very good. We therefore in cooperation with the school will
continue this. The second public building, KFA training centre, is proposed, for which the
feasibility study is under implementation. With these examples we aim at opening the
market and application of wood biomass in RE. This is combined with SFM practices and
supply of wood biomass by local actors (APFO).
In support of application in policy and practice a workshop on SFM standards and Forest
Certification is organized through REFORD, with member organisations from Kosovo,
Macedonia and Montenegro and the Kosovo forest institutes. Certification is helping to
Photo 10 and 11 Producer groups for NTFP – raspberry cultivation, APFOs Pashtriku and Parku
15
comply with the EU Timber Regulation for Due Diligence assuring all wood products having
a legal origin entering the EU market. A start is made with permanent plots to assess
forest development and carbon sequestration. Assessing carbon is based on the
methodology applied for the National Forest Inventory (NFI). The permanent sample plots
are defined based on the existing grid established in line with the framework of
implementation of NFI.
PEFC Design of Macedonia Certification System for Sustainable Forest
Management
Duration: July 2014 – July 2016
Area: Macedonia
Donor: PEFC
Total budget planned: 45,918 € (PEFC 32,417 €; CNVP contribution 13,501 €)
Total budget realised: 14,363 € (PEFC: 7,049 €, CNVP contribution 7,314 €)
Note: Project contract with PEFC in CHF (exchange rate used 1,23 CHF/€ as per contract
signing date)
Budget planned 2015: 18,200€ Budget 2015 realised: 10,913€
Total advisor days: 70 days Total advisor days realised: 37 days
Advisor days planned 2015:19 days Advisory days realised 2015: 26 days
The project has three objectives: to build a wide consensus among different stakeholders
in Macedonia on the criteria and indicators for SFM, to establish an efficient and
sustainable National Government Body (NGB) able to manage, keep and update the
Macedonian SFM standards and to apply for Macedonian SFM certification system for
endorsement at PEFC Council.
Project activities started July 2014, but most implementing activities started from
February 2015. It took time to engage all stakeholders in the process. Until the end of
2015 the project succeeded to draft criteria and indicators for SFM. This was developed by
the initial group of forest experts and discussed among wide group of stakeholders.
Meanwhile all preparation for the establishment of the NGB; statutes and other documents
compiling the forest certification scheme, is completed. The process is developing slow and
is not openly supported by all stakeholders. The State Forest Company is passive, but the
other stakeholders appreciate and support the certification process. The process will
continue in 2016; registering of the NGB, submission request to PEFC for membership and
continuing the process of finalizing the criteria and indicators for SFM.
EU TREES: Timber Regulation Enforcement to protect European wood Sector from
criminal infiltration
Duration: October 2014 – May 2016
Area: EU, Macedonia, Albania, Kosovo
Donor: EU
Total budget: 45,530 € (EU 41,321 €, CNVP contribution 4,209 €)
Total budget realised: 30,265 € (EU: 27,226 €, CNVP contribution 3,132 €)
Budget planned 2015: 22,100 € Budget 2015 realised: 22,768 €
Total advisor days: 145 days Total advisor days realised: 146 days
Advisor days planned 2015: 95 days Advisory days realised 2015: 109 days
Note: total advisory realised days are equal to 145. Total advisory billable days in 2015
are 109 days.
16
The TREES Project (Timber Regulation Enforcement to protect European wood Sector from
criminal infiltration) is a 20 month transnational project and is a research project funded
by EU as part of the ISEC Program (Prevention of and Fight against Crime). TREES aims at
exploring anti-corruption potentialities of EU Timber Regulation (N°995/2010) (EUTR),
increasing cooperation among law enforcement agencies and private operators, improving
their cooperation to fight against crime and transfer knowledge to EU member states.
The potential and risks for criminal activities in the forestry sector were identified in the
country studies for Macedonia, Albania and Kosovo. The studies have provided an
overview of the national legislation, statistic and institutional data about criminal records
related to forestry in the countries. Awareness among forest stakeholders for the European
Timber Regulation was assessed through the interviews with the representatives form
institutions and influence of the Regulation to national policy, market and institutions. The
perception of corruption and criminal in forestry sector was assessed through a web based
survey. Although people have heard about the regulation, real understanding on the
regulation, certification and due diligence is very limited. Hardly any practice exists on this
in the region. The training sessions in Macedonia, Albania and Kosovo have increased
awareness and knowledge among forest stakeholders for the EU Timber Regulation.
In general, TREES project provided increased attention to forest actors from the non EU
countries about the influence of the EUTR to the European market. There is an obvious
lack of understanding and no steps are taken at institutional level in non EU countries to
prepare forest actors for the influence of the EUTR on their forest economy. The project
will end in 2016 providing a toolkit for the forest actors to support enforcement of the EU
Timber Regulation.
Photo 12 and 13 TREES Project Interim Workshop, Skopje
FAO Land Consolidation project in Macedonia
Duration: May 2014 – April 2016
Area: Macedonia
Donor: FAO
Total budget: 17,572 € (FAO)
Total budget plan: 12,000 € Total budget realised: 8,132 €
Total advisor days: 165 days Total advisor days realised: 63 days
Advisor days planned 2015: 112 days Advisory days realised 2015: 63 days
CNVP is engaged in implementation of the ongoing project on Land Consolidation in
Macedonia, providing specific expertise on land management practices. The project
“Support to the formulation and implementation of a national land consolidation
programme" is implemented by the Ministry for Agriculture, Forestry and Water Economy
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(MAFWE) and supported by FAO. CNVP is providing input on Land Consolidation (LC) in the
project activities in the area of Konçe, Radovis where voluntary based land consolidation is
ongoing. It is the same area where CNVP was engaged during STIMERALD project (2010-
2012).
The following steps are taken in LC process in the pilot area:
- Awareness meetings with the farmers
- Farmer interviews to assess their needs and interest for LC
- Cadastre data analysis and preparing the maps for the LC area
- Start-up workshop for community development plan development
- Farmer consultation on planning the land exchanges and reallocation of land parcels
- Finalization of the first agreements for land exchanges
Photo 14 Farmer consultation for land exchange
The project made an assessment of the legal framework and proposals for its
improvements are provided. In the process of planning for LC in 2016 there will be two
scenarios developed. The first one will take in to account private-private land exchanges
where through a process of negotiation and
facilitation the farmers will exchange land
parcels improving the structure of their
farms. The second scenario will include
private land parcels and parcels in state
ownership. The land exchange will follow all
legal steps foreseen in the legal framework,
even that the framework is not clear and is
not providing sufficient support to use state
land in a voluntary based approach of LC.
The project has started with
implementation in spring 2015 and will last
till November 2016.
5 Business Development
In 2015 Business Development was a top priority, gaining additional importance when not
gaining the Sida regional CFF project. The focus on BD therefore increased in the
beginning of the year and our priorities were adjusted. This was done based on
consultation in the Board, MT (Management Team) and BD unit.
In 2015 we limited results were made on gaining new projects. The ambition of CNVP is
unchanged, it remained diversifying and widening our programme including an expansion
in the region.
BD priorities
Figure 1 Land exchange map (part) in Konçe
18
The main priority is widening of CNVP resource base and enlarging our portfolio with new
projects and partner organisations. The revised priorities for BD in 2015 are:
● Review the Sida projects FLED and SSPDF to include some regional work as
foreseen in CFF;
● Establish a presence of CNVP in Montenegro;
● Enlarge our initial contacts in Serbia for cooperation and joint projects
● Acquisition; apply and gain EU projects and other financing sources;
● Widen our thematic focus (RE (Renewable Energy) and environment) in
applications and portfolio;
● Improve and widen networking with partners;
● Improve and further develop our BD practice.
Advisory day realization
The table below provides the advisor service results, indicating the total overview of time
spent by CNVP in 2015.
Table 4 CNVP day realisation (part I)
Country
Total working
days plan
Total working
days end
2015 % Advisory
days
Advisory days till
end 2015 %
%Advisory days vs.
total working
days (realised)
Strat. & Pos.
Strat. &
Pos. end
2015 %
Albania 2865 2498 87% 2368 2085 88% 83% 180 126 70%
Kosovo 1320 1330 101
% 1080 1211 112
% 91% 60 36 60%
Macedonia 660 660 100
% 494 391 79% 59% 51 60 118%
Netherlands 225 392 174
% 100 201 201
% 51% 65 76 116%
Total 5070 4879 96% 4042 3888 96% 80% 356 298 84%
The overall advisory day realisation of 96% from original plan. The days are lower in
Albania since the recruitment of new advisors is postponed for the next year. In the
Netherlands it is higher than planned since it includes the regional advisor based in
Montenegro that operates for the regional components of FLED and SSPDF. The balance of
advisory days versus working days is with 80% relatively good taking in to account not
obtaining new projects expected. The advisory day realisation for Netherlands (regional)
staff is lower (51%) but as planned due to general tasks on management and BD.
Strategy & positioning is with 84% realisation, while it is higher in Macedonia (118%) and
the Netherlands (116%) since additional effort was giving for overall regional aspects. Two
staff of CNVP Macedonia support overall CNVP aspects on BD and strategy which was
increased due to the extra focus on programme development. The business development
has a good realisation (120%) showing the increased focus and in line with the extra effort
given to increase the number of applications and BD effort. Again is it is higher in
Macedonia (243%) and the Netherlands (193%) due to regional role on BD as well as the
urgency for finding additional projects.
The learning days are lower than planned (44%), especially Albania and Kosovo have less
learning day realisation. Some also due to absence from the regional training, but also due
to the lower realisation of the country team training plans prepared by the Country
Directors. The support days are higher than planned 166%. This is reviewed and proper
allocation started in Albania in the second half of the year.
19
Table 5 CNVP day realisation (part II)
Country
Business Develop-ment
Business Develop-ment till end 2015 %
%Total days vs BD till end 2015
Learn-ing
Learn-ing till end 2015 % Support
Support till end 2015 %
Albania 117 100 85% 4% 130 48 37% 65 139 214%
Kosovo 95 29 31% 1% 55 25 45% 30 29 98%
Macedonia 75 183 243% 33% 25 18 70% 15 9 61%
Netherlands 45 87 193% 25% 10 7 71% 10 21 213%
Total 332 398 120% 8% 220 98 44% 120 199 166%
BD unit actions
The BD unit in supported the overall CNVP work related to BD. This is done under
responsibility of the Executive Director in support of the MT and specific teams. The BD
unit is comprised of two advisors in CNVP Skopje office having a dedicated part (35%) of
their time towards BD work at CNVP overall and regional level as well for CNVP Macedonia.
Focal persons for BD (20%) in the counties Albania, Kosovo and Montenegro are engaged
in the BD unit work.
Next to the support in networking, project identification and proposal preparation the BD
unit supported on specific areas:
● PR through maintenance and update of the website and Facebook;
● Publication and distribution of CNVP Newsletter Sprouts;
● Representation in relevant events, project calls information sessions;
● Updating of staff CVs and Project References;
● Maintenance of the BD pipeline;
● Support and coordination of BD activities with the teams.
6 Human Resource Development and Internal Organisation
CNVP is gradual growing and developing. This chapter presents the internal organisation
and issues.
Staffing
During 2015 our initial plan was to grow with 4 full time staff (2 full time staff and 2 part
time staff), based on the CFF project and expansion in Montenegro and Serbia. Due to
cancelation of the regional project the planed recruitment was not realised. In line with our
strategy, as per May 2015, one additional staff is engaged in Montenegro as advisor and
CNVP representative.
The advisor in Montenegro is engaged for the implementation of the regional components
of the Sida projects and finding opportunities in Montenegro and the region. The advisor
for Montenegro is having its base in Podgorica, administratively placed under CNVP
Netherlands and day to day management under CNVP Macedonia leadership, since there is
no CNVP Montenegro established yet.
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Figure 2 Employee division CNVP
All new staff are recruited with definite contracts. There are now 26 full time employed
people based in four countries (Albania 13, Kosovo 7, and Macedonia 5, Montenegro 1)
The CNVP staff structure is divided among advisors, management functions and support
staff. The management functions also provide partly expert/advisory services. The support
staff consist of the finance administrators. The process for recruitment of a BD advisor is
ongoing and is expected to be completed beginning 2016. The CNVP staffing is in gender
balance although there are no women in a management position.
Learning
In our annual plan we made an initial allocation and plan for personal development and
learning. This plan was further elaborated in the beginning of the year in a more detailed
plan. The detailed learning plan included learning at individual and team level. Also some
combined training was identified for more staff at regional level.
During 2015 the total time spent on learning was with 41% realisation (refer table chapter
6). The budget spend on training is about 40% from plan. Despite the specific planning at
country level, especially the individual and team level training is underspent. The regional
combined training for financial aspects and nature conservation was not realised. Budget
savings were achieved however through combining overall training with internal meetings.
The main training and learning in 2015 related to:
Project Cycle Management and Monitoring training with Albania team
50%
27%
11%
4%8%
EMPLOYED CNVP STAFF PER COUNTRY 2016
Albania (13) Kosovo (7) Macedonia (3)
Montenegro (1) Regional office in MK (2)
Figure 3 Staff division by position Figure 4 Staff division by gender
15%
73%
12%
STAFF BY POSITION
Management team (4) Advisors (19) Support (3)
21
Result Based management training follow up on project cycle management
done in September on all staff meeting;
International Environment and nature conservation training, Naturregio;
Disaster Risk Reduction online training course
Training on GIS/GPS.
The CNVP organisation is gradual growing and developing. The institutional learning
started with the process of the demerger and its process. The next step in the
development of CNVP focused on establishing the organisation and successful
implementation of the transferred projects. In 2014 the transition was made from a
programme that originated still from before the demerger in a programme to a
programme with projects fully developed by CNVP. The successful completion and
evaluations of the Sida projects allowed for this transition. Parallel the organisational
functioning was further developed. Last year focused on completion of the structures and
organisational processes in CNVP and widening and diversifying the programme. As
presented in the BD chapter the results were lower than expected. The experience is used
to learn and reflect in CNVP and our BD efforts. Although a lot of focus and work is spend
on BD we need further increase the quality of our BD work (networking and partnership
building, early intelligence and proposal writing). This was reflected especially within the
MT and Board. As a result it is decided to make an additional BD investment.
Our experience, not gaining the regional project, showed the impact on the team, creating
some frustration and disappointment. It also led to some stress on the teams. Specific
attention was given to this in team meetings, MT and Board discussions. Our focus is on a
joint CNVP, projects are of CNVP, not of certain teams, countries. Measures will be taken if
not sufficient work is gained. Top priority is given to BD, for a sustainable future we need
to widen our programme and avoiding the too high focus on implementation only.
Internal Organisation
During 2015 the governance structure of CNVP is adopted. CNVP had till the end of 2015 a
Board of the foundation responsible for the governance of CNVP. In line with the
developments of CNVP and to reflect the actuality of day to day management with the
Director the governance structure is adjusted. The Board of has prepared a new CNVP’s
governance structure with Board of Directors, comprised of statutory Director – the
Executive Director and a Supervisory Board. The new structure will be effective from the
beginning of January 2016.
The following issues were addressed in our internal structure:
● Quality control using, compliance and regular management monitoring of
finances and time writing.
● Changes made in EXACT including buying of consolidation module. The EXACT
consolidation module is not working on full functionality, yet. This is under
development of EXACT. It will be addressed with the vendor in 2016.
● Financial audit for the period January to December 2014 is completed with
unqualified opinion
● Sida project year audits are completed with unqualified opinions
● Interim audit for 2015 covering the period January – August was conducted.
● Completion of the EDP (Electronic Data Processing) audit completed on Hour
Power, our time writing system. It provided recommendations for upgrading
Hour Power, which are addressed in an upgraded Hour Power. The new Hour
Power software will be released from 1st of January 2016 on, after which a follow
up EDP audit will be done.
The audit process went well and the cooperation with the Deloitte Auditors was very
satisfactory and professional. It resulted in a good audit opinion, but as well
recommendations for CNVP that will help us to further improve and strengthen our
organisation. During the interim audit a review was made on the issues identified, which
indicates we are in good progress.
22
Investments
In 2015 based on the Sida projects plans a few investments were made. In Albania 5 4x4
vehicles, 9 laptops and 3 printers were bought from the Sida FLED project. In Kosovo 2
4X4 vehicles, 1 photocopier and 2 printers from Sida SSPDF project were bought. In
Macedonia 3 laptops were bought from CNVP resources.
All countries made their list of the assets that need to be sold or donated and the
inventories are updated.
The finance software of EXACT was purchased giving a more cost efficient option in the
longer term than renting. The software includes the consolidation module, which is under
development to adjust it to our requirements.
CNVP Board, MT & Employee Council
In 2015 three Management Team meetings (January, May and December 2015) and two
CNVP Board meeting (April, September 2015) were held, minutes were taken and
distributed. The planned Board meeting for December is postponed to January 2016. The
annual report of CNVP 2014 including the financial statements were adopted by the Board
in the April meeting in Tirana. The annual plan 2016 was adopted in January 2016 on the
Board meeting in Tirana.
The meeting with Employee Council was done in September. Minutes taken and distributed
within CNVP. On the all staff in October in Budva meeting the new Employment Council
was elected and will represent the employees for incoming two years and some general
council related issues were discussed.
Budget 2016
The annual plan of 2016 is completed at the end of the year providing the programme
development, priorities and the annual budget. The abbreviated budget for 2016 is
presented below in the table.
Table 6 CNVP Budget 2016
CNVP BUDGET 2016
Total
Personnel cost 926,600
Operational costs 336,200
Project cost 811,000
Project Revenue -811,000
Project Advisory Revenue -1,113,000
Other Revenue 0
CNVP Result 149,800
Investments
Vehicles 0 Equipment 8,000
Total investments 8,000
CNVP has at the moment a specific policy on size and function of capital/general reserve
for a part of its reserve. One part of the reserve is allocated for the depreciation of project
assets that are having value higher than 5000 euro. The main policy with respect to the
function of the general reserve is to build up a sufficient reserve to ensure continuity of
operations for CNVP. Within the Board a minimum threshold is set of 500,000 € for
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general reserve. In case the general reserve falls below the Board needs to be informed
immediately. The continuity reserve will be build up within the standards of the sector.
Risk assessment
There are several, mainly programme related risks identified during 2015 which are also
addressed in our annual plan of 2016. These risks are identified in review with staff
meetings and especially with the MT and Supervisory Board.
• Low BD results and low BD capacity
• Limited interest of donors, funding in forestry or natural resource management
• Reduced team motivation
• Increased costs
• Weak politics and political unrest
• Stagnating forestry reform processes
The most important risk relates to our BD, widening of our portfolio and diversifying our
donor connections. Limited results for this is threatening the longer term sustainability and
financial performance of the organisation. To address this we have increasingly focused in
BD, made a specific priority and focus of BD for our 2016 plan, allocated extra investment
for BD staff and BD related training and coaching with this year and planned for 2016.
The political developments and reforms are stagnating. This can have an impact on certain
project results we like to achieve with our partners. This is monitored in the teams. If
needed additional effort is given to support partners with lobbying and advocacy. It is also
discussed with our donor partners, especially Sida during project review meetings. In the
end if needed project results can be changed in mutual agreement. For the time being this
was not needed.
An organisational CNVP risk assessment is done reviewing the internal and external
organisation. The organisational risk review is done using set areas of risks which are
reviewed each time for annual reporting in CNVP. This is presented in the table below.
Risk Low Medium High Measures
Inadequate BD X Current BD results are limited. To
secure long term sustainability
increased results are needed. Specific
investments made for BD (learning,
focus, recruitment)
Inadequate Project
management
X Current projects run well. Increased
need for compliance on results,
control and measurement however
require increased focus and overall
monitoring on project management
from higher management. CNVP will
continue its monitoring and assure
this is achieved during management
transition.
Engaging in loss
making deals
X BD practices and control on costing
and pricing and management
approval with threshold exist and
minimize the risk. Full implementing
the BD procedures is needed.
Insufficient Cash
flow
X Regular monitoring. No specific
measures, the current projects
provide pre-financing
Overhead costs and
fee rates
X CNVP costs are relatively high
compared to local organisations. At
24
regional or international level these
are competitive. Overhead levels and
salary costs should remain at current
levels.
Procurement X CNVP procedures are strict and
implemented and monitored.
Political situation X Political situation might have an
adverse effect on results and impact
to be achieved in programmes. In
general this is part of the context we
work in. Where needed programme
activities will be reviewed and
adjusted with partners.
Safety and security X No specific measures. Main risks are
travel risks. CNVP assures vehicles
are safe and well maintained.
Staff satisfaction
and motivation
X Limited BD results and staff changes
may lead to stress and lower
motivation. Transparency, regular
staff meetings and discussions, job
performance assessment and staff
participation and engagement of the
Employee Council all support
addressing this and alert when
motivation is at risk.
Corruption & Fraud X CNVP has reviewed its fraud policy.
Adjusted it agreements including a
fraud clause. An open system is
available for whistle-blower and
fraud. Regular and strict financial
control takes place including audits.
Project implementation and financial
procedures are made in team effort
and transparent, avoiding single
person, position transactions.
25
Part II: Abbreviated Annual Accounts
Introduction – CNVP Third Annual Accounts
These are the third annual accounts of ‘Stichting’ Connecting Natural Values and People
Foundation abbreviated CNVP, with registered seat in The Hague, The Netherlands.
CNVP’s main objective is to improve livelihoods of rural people by providing quality
services in forestry, rural development, environment and biomass for renewable energy;
and to increase the capacity of local actors to achieve their sustainable development.
CNVP achieves its objectives by helping to develop the capacity of local actors through
provision of advisory services and technical assistance, based on the expertise and
experience of its team and partners.
CNVP’s Structure
Foundation does not aim to make a profit. It functions as a not for profit Netherlands
based international organisation, which designs, implements and manages projects
financed by international donors, with its work currently focused in the Balkans.
CNVP’s annual accounts constitute solely financial statements of one legal entity, CNVP,
the Netherlands based, not for profit organisation, with three Balkan branches active in
Macedonia, Albania and Kosovo.
CNVP’s annual accounts reflect the main activities of the Foundation, management of the
externally financed projects and provision of advisory services.
CNVP’s main activities are financed both by international donors as well as through its own
contribution. CNVP’s initial capital contribution was donated by SNV, it consisted in cash
and tangible fixed assets.
In the statement of financial performance, income generated from CNVP activities is
reported under income from grants, which indicates funds made available to CNVP by
other parties, donors, to be managed for the benefit of third parties. Third party
beneficiaries are located in the Balkan countries, where CNVP presently operates in.
Beneficiaries do not pay for services provided by CNVP. Funds are transferrable from
donors to CNVP upon fulfilment and compliance with certain stipulations, as foreseen in
various legal contracts that CNVP enters in with donors.
Expenditure entails expenses incurred during and for the implementation of the projects,
as well as expenses for the day to day operations of the Foundation. The balance of
income and expenditure, or the result for the period is transferred to the capital base of
the organisation and it is reflected in the balance sheet. In the balance sheet are also
reflected tangible fixed assets; current assets which are mainly project related
receivables; grants receivable, prepayments and cash; while current liabilities consist of
payables, accruals and pre-received grants.
CNVP’s annual accounts consist of the following:
● Balance Sheet after appropriation of balance of income and expenditure at 31
December 2015
● Statement of Financial Performance for the period from 01 January 2015 to 31
December 2015
● Cash flow statement for the period from 01 January 2015 to 31 December 2015
26
● Accounting principles
● Notes to the Balance Sheet
● Notes to the Statement of Financial Performance
● Constitution of the Board
● Signing of the Financial Statements
● The other information
● Independent Auditor’s Report
Note: due to rounding, difference of 1 euro may occur
27
Abbreviated Balance Sheet at 31 December 2015
After appropriation of result from 01 January to 31 December 2015
Assets Note 2015 2014
EUR - EUR -
Tangible Fixed Assets 1
Vehicles 173,921 0
Office equipment 17,293 10,199
Subtotal 191,214 10,199
Current Assets
Receivables 2 0 0
Grants receivable 3 1,545 0
Prepayments 4 30,199 26,994
Cash 5 2,196,340 1,558,319
Subtotal 2,228,084 1,585,313
Total Assets 2,419,298 1,595,512
28
Abbreviated Balance Sheet at 31 December 2015
After appropriation of result from 01 January to 31 December 2015
Liabilities Note 2015 2014
EUR - EUR -
Foundation's Capital
General reserve 6 852,405 850,495
Appropriated reserve 6 173,921 0
Subtotal 1,026,326 850,495
Current Liabilities
Payables 7 7,538 10,312
Taxes, social security & pension 8 16,790 15,989
Grants provided 9 1,354,893 699,056
Accruals 10 13,752 19,660
Subtotal 1,392,972 745,017
Total Liabilities 2,419,298 1,595,512
29
Abbreviated Statement of Financial Performance
For the period from 01 January to 31 December 2015
Actuals Budget Actuals
from 01
January
from 01
January from 01 January
to 31 December
to 31 December to 31 December
2015 2015 2014
Income Note EUR - EUR - EUR -
Income from grants 11
1,767,857
1,826,300 922,109
Other income 12
15,675
29,000 148
Total Income 1,783,532 1,855,300 922,257
Expenditure
Personnel 13
782,456
841,300 749,818
Depreciation fixed assets 14
30,944
36,500 8,882
Other expenses 15
794,302
985,100 499,836
Total Expenditure
1,607,702
1,862,900 1,258,536
Balance Income & Expenditure 16
175,830 7,600 (336,279)
Appropriation Balance Income & Expenditure
to:
General reserve 1,909 (7,600) (336,279)
Appropriated reserve 173,921 0 0
Foundation Capital 175,830 (7,600) (336,279)
Balance Income & Expenditure after Appropriation
-
- -
30
Abbreviated Cash flow statement at 31 December 2015
Note 2015 2014
EUR EUR
Operating result 11;13-15 160,155 (336,426)
Adjustment for :
Depreciation 1 30,944 8,882
Project Receivables 3 (1,545) 46,835
Prepayments 4 (3,205) (1,727)
Payables 7 (2,775) (29,166)
Taxes, and leave of employees 8;10 (5,106) (942)
Project Payables 9 655,837 484,457
Interest received 3 259 15
Net Cash from Operating Activities 834,564 171,928
Purchase of fixed assets 1 (211,959) (9,184)
Sale of fixed assets 12 15,416 133
Cash from investment activities (196,543) (9,051)
Net increase in cash and cash equivalents 638,021 162,877
Cash and Bank at December 31,2015 9 2,196,340 1,558,319
Cash and Bank at January 1,2015 9 1,558,319 1,395,442
31
Accounting Principles
General information and structure
Connecting Natural Values and People Foundation, with its registered seat Tolakkerweg 68
3739 JP Hollandsche Rading The Netherlands organisation, currently with three registered
and active branches in the Balkan countries of Macedonia, Albania and Kosovo.
The annual accounts of CNVP cover period from 01 January 2015 to 31 December 2015.
They reflect the financial information of the Netherlands based foundation with the
financial information of the three local branches incorporated. For the purposes of these
financial statements internal transactions and relations were eliminated.
General accounting principles for the preparation of the Abbreviated annual
accounts
The annual accounts are prepared in accordance with the Dutch Accounting Standard RJ
640 for not for profit organisations. This abbreviated version of the annual report was
prepared for publication purposes. This annual report has been abbreviated from the
annual report which was adopted by the board on April 23, 2016. Deloitte Accountants
B.V. has expressed an unqualified opinion with the full annual report on April 23, 2016. .
In case a full version is desired including the auditor opinion please do request a copy at
CNVP ([email protected])
Valuation of assets and liabilities and determination of the result takes place under the
historical cost convention, unless presented otherwise. If assets and liabilities are stated in
foreign currencies, the calculations are based on the exchange rates prevailing on the
balance sheet date at 31 December 2015. Exchange rate differences are included in other
operational costs, in the statement of financial performance. Income and expenses are
accounted for on accrual basis. Profit is only included when realised on balance sheet date.
Liabilities and any losses originating before the end of the financial year are taken into
account if they have become known before preparation of the annual accounts.
The financial statements are presented in euros, which is the functional and presentation
currency of CNVP.
Financial instruments
Financial instruments are both primary financial instruments (such as receivables and
debts), and derivative financial instruments (derivatives).
The notes to the specific items of the balance sheet disclose the fair value of the related
instrument if this deviates from the carrying amount. If the financial instrument is not
recorded in the balance sheet the information on the fair value is disclosed in the notes to
the ‘Contingent assets and liabilities’. Reference is made to the recognition per balance
sheet item for the principles of primary financial instruments. CNVP does not have
financial derivatives.
Accounting principles for the valuation of assets and liabilities
Assets
Tangible fixed assets
Tangible fixed assets are presented at cost less accumulated depreciation and, if
applicable, less impairments in value. Depreciation is based on the estimated useful life
32
and calculated as a fixed percentage of cost, taking into account any residual value.
Depreciation is provided from the date an asset comes into use.
The assets are depreciated by asset group over their expected economic lives, using the
linear method. Residual value is not taken into account. Any new assets purchased from
CNVP are included at historical costs and are converted using the exchange rates
prevailing at the date of the purchase. The tangible fixed assets purchased by or for the
externally financed programmes are also capitalized under the fixed assets.
As per requested by the donor (Sida) the assets that have value higher than 5,000 € will
be given to the cooperation partner at the end of the project which is 31.07.2018. Those
assets depreciation is calculated for the years that assets (only vehicles) will be used in
the organisation till the end of project.
Annual rates of depreciation used are:
- Vehicles 25%
- Office equipment 33%
- Sida Project assets with value higher than 5,000 € 35%-40%
Any costs of repairs or maintenance are reported in the statement of financial performance
for the period.
Current Assets
Receivables
Upon initial recognition the receivables are valued at fair value and then valued at
amortised cost. The fair value and amortised cost equal the face value. Provisions deemed
necessary for possible bad debt losses are deducted. These provisions are determined by
individual assessment of the receivables.
Receivables consist mainly of project related receivables for work carried out by CNVP on
projects, for which the funding has not been received as of the date of the balance sheet.
Prepayments consist of short term rent deposits and prepaid expenses for year 2015.
Cash and bank
The cash and bank is valued at face value. If cash equivalents are not freely disposable,
then this has been taken into account upon valuation.
Capital and Liabilities
Foundation’s Capital consists only of a general reserve. The account includes the initial
donation of SNV to CNVP both in cash and fixed assets. At the end of the period the
balance of income and expenditure for the period also gets appropriated to this account.
The general reserve is for unrestricted use of CNVP and it is maintained to ensure the
continuity of the organisation. The appropriated reserves relates to the project assets
reserve. The project assets reserve is for the depreciation of fixed assets that are
purchased from donor’s project funds with a value higher than 5,000 EUR and will be
given to the cooperation partners.
Current liabilities include mostly project related items and project funds received in
advance to be utilized within the coming year. A lesser amount is made up of payables and
accruals related to payroll and other employee benefits.
33
Transactions in foreign currency are recorded based on exchange rates updated
monthly. At the end of the year the foreign currency denominated receivables, payables,
cash and bank balances are revaluated. Results are posted in the statement of financial
performance.
Social security and pension
CNVP contributes the employer share of social security schemes in compliance with local
legislations of its branches and it also reimburses employer share of contributions for
pension, in case the employee cannot be covered by the state owned social security.
Accounting principles for determining the balance of income and expenditure
Principles for the determination of the result
Income and expenses are accounted for on accrual basis. Income is recognized only when
realized at the balance sheet date. Income generated by CNVP is categorized under
income from grants, since CNVP manages donor funds for the benefit of third parties. On
their part, beneficiaries do not pay for services received from CNVP work. Revenues from
services are recognised in proportion to the services rendered, based on the cost incurred
in respect of the services performed up to balance sheet date, in proportion to the
estimated costs of the aggregate services to be performed. All expenses related to
activities carried out prior to the balance sheet date are taken into account within year’s
expenses.
The balance of income and expenditure, or the result for the period is determined as the
difference between income generated by CNVP activities and expenditure related to
implementation of these activities.
Principles for preparation of the consolidated cash flow statement
The cash flow statement is prepared according to the indirect method.
The funds in the cash flow statement consist of cash and cash equivalents. Cash
equivalents can be considered to be highly liquid investments.
Cash flows in foreign currencies are translated at an estimated average rate. Exchange
rate differences concerning finances are shown separately in the cash flow statement.
Transactions that do not result in exchange of cash and cash equivalents are not
presented in the cash flow statement.
34
Notes to the abbreviated Balance Sheet at 31 December 2015
1. Tangible fixed assets
In 2015, CNVP purchased assets that was paid mainly through project funds received.
New assets purchased are recorded in the books as of the date the assets were put in use.
Depreciation expense starts from that date. Depreciation is based on the estimated useful
life of each asset group and it is calculated as a fixed percentage, not taking into account
any residual value for the asset. Asset life extends to 4 years for vehicles and 3 years for
office equipment. Depreciation expense is accounted for in the statement of financial
performance. Costs for periodical major maintenance are also charged to the statement.
Based on Sida requirements, tangible fixed assets purchased by or for externally financed
Sida programs with value higher than 5,000 € are fully depreciated over the total project
period and handed over to project partners at the end of the project period. This is
applicable for the purchased vehicles. Therefore their lifespan is calculated not as regular
vehicles but until the project end when the assets will be given to the cooperation
partners.
The following table reflects movements in the fixed assets by category.
The movements in the tangible fixed assets are as follows:
Vehicles Office equipment Total
EUR EUR EUR
Acquisition cost as at January 1, 2015
55,195
18,323
73,518
Cumulative depreciation and other impairments as at January 1, 2015
(55,195)
(8,124)
(63,319)
Carrying amount as at January 1, 2015
-
10,199
10,199
Investments
198,480
13,479
211,959
Carrying amount of disposals
-
-
-
Depreciation
(24,559)
(6,385)
(30,944)
Carrying amount as at December 31, 2015
173,921
17,294
191,214
Acquisition cost as at December 31, 2015
253,675
31,802
285,477 Cumulative depreciation and other impairments as
at December 31, 2015
(79,754)
(14,509)
(94,263)
Carrying amount as at December 31, 2015
173,921
17,293
191,214
35
Current Assets
2. Receivables
The balance of receivables consists primarily in receivables for project work done for which
the funds were not received as of the balance sheet date. These are receivables for a small
engagement in Kosovo that was completed within year 2015.
At At
31-12-2015 31-12-2014
EUR - EUR -
Project Receivables
1,545
Total
1,545
-
3. Grants receivable
There are no grants receivable as for 31 December 2015.
4. Prepayments
Prepayments include prepaid expenses related to items such as rent deposits and school
fees pre-paid for 2015 and overpayment that will be reconcile in 2016.
At At
31-12-2015 31-12-2014
EUR - EUR -
Rent deposits 3,184
3,248
Prepaid school
fees 26,965 23,746
Overpayment
50 0
Total 30,199 26,994
36
5. Cash and bank
Cash and bank balance represents liquidity at the disposal of CNVP as of the date of the
balance sheet. Total balance consists in balances of bank accounts owned by CNVP, two
dedicated project bank accounts for Sida SSPDF and Sida FLED, and cash on hand on 31
December 2015.
Total of both project bank balances on 31 December 2015, was € 1,828,173 which are
pre-received donor funds for project Sida SSPDF & Sida FLED. The amount of pre-received
donor funds still include to be recognized income from first part of project year 2 of both
projects. This will be settled in the first months of 2016.
The remaining amount of € 368,167 reflects balance of cash that belongs to CNVP as of
balance sheet date.
At At
31-12-2015 31-12-2014
EUR - EUR -
CNVP bank balances
Rabobank Netherlands 253,563 306,105
ProCredit Bank Albania 43,184 139,681
Raiffeisen Bank Albania 5,648 1,645
Procredit Bank Kosovo 52,499 14,198
Uni Bank Macedonia 11,356 20,124
Subtotal 366,250 481,753
Project bank accounts Rabobank Netherlands, Project SIDA SSPDF 876,978 424,975
Rabobank Netherlands, Project SIDA FLED 951,195 648,535
Subtotal 1,828,173 1,073,511
CNVP cash on hand
CNVP Albania
964 2,733
CNVP Kosovo
580
183
CNVP Macedonia
374
138
Subtotal 1,918 3,054
Total 2,196,340 1,558,319
Note: due to rounding, difference of 1 euro may occur
37
Liabilities
Foundation’s Capital
6. Reserve
Foundation’s Capital is made up of a reserve including a general reserve and project
assets reserve.
The general reserve is for unrestricted use of CNVP and it serves to ensure the continuity
of the organisation.
The appropriated reserves relates to the project assets reserve. The project assets reserve
is for the depreciation of fixed assets that are purchased from donor’s project funds with a
value higher than 5,000 EUR and will be given to the cooperation partners. The
expenditure of these assets are charged to the donor and funds are transferred to the
reserve of CNVP. The value of those fixed assets represents the net book value at the end
of the year 2015 that will be used for the depreciation till the project ends.
The balance of income and expenditure over 2015 is appropriated to the reserve
Below is a summary of movements in the reserve account.
Balance at Add At
31-12-2015 result for period 31-12-2014
EUR - EUR - EUR -
General reserve 852,405 1,909 850,495
Appropriated reserve 173,921 173,921 0
Total 1,026,326 175,830 850,495
Current Liabilities
7. Payables
The amount of € 1,516 is payable to SNV. It is remaining amount from the advance paid
to CNVP for cost that were done for the closure of SNV regional office.
Amounts to be paid consist of organisation expenses incurred in 2016 to be paid in 2015.
38
Payables
This item is broken down as follows:
At At
31-12-2015 31-12-2014
EUR - EUR -
Amounts to be paid
6,022
8,865
Debtors
1,516
1,447
Total 7,538 10,312
8. Payroll taxes, social security and pension payable
This payable consists in payroll tax withheld from CNVP staff salaries; social security and
pension premium, both employee and employer share. Amounts payable for this item are
withheld from employees, as well incurred as expenses from CNVP from December 2015
staff salaries to be paid in January 2016.
At At
31-12-2015 31-12-2014
EUR - EUR - Payroll tax, social security & pension payable
16,790
15,989
Total
16,790
15,989
9. Grants provided
These are pre-received funds from the grant contracts that continue to implement beyond
31 December 2015.
In 2015 based on the grant schedule and approve financial reports grant amounts from
the donor (Sida) were provided. Part of the amount was recognised as income at the end
of the year. The remaining amount is recognised as liability. The remaining amounts
related to small size projects TREES and PEFC project.
39
The following table shows the balance of grants provided by donor to be used after 31
December 2015.
At At
31-12-2015 31-12-2014
EUR - EUR -
Project Sida FLED 604,937 391,760 Project Sida SSPDF 725,182 255,961
Project Trees
5,635
26,047
Project PEFC 19,139
25,287
Total 1,354,893 699,056
10. Accruals
Accruals are made up of amounts of outstanding leave days accrued for 2015. Below is the
breakdown of this item.
At At
31-12-2015 31-12-2014
EUR - EUR - Outstanding leave days
13,752
19,658
Total
13,752
19,658
Contingent assets and liabilities
Based on Sida requirements for externally financed Sida programs, tangible fixed assets
purchased with a value higher than 5,000 € are fully depreciated over the total project
period and handed over to project partners at the end of the project period.
40
Notes to the abbreviated Statement of Financial Performance
Income
11. Income from grants
Income generated from CNVP activities is all classified as income from grants. Funds are
made available to CNVP by donors and are used for the benefit of third parties.
Beneficiaries do not pay for services provided by CNVP. Funds are transferrable to CNVP
upon fulfilment and compliance with certain stipulations, as foreseen in various legal
contracts that CNVP enters with different donors. Income is recorded on accrual basis,
meaning it is recognized when earned, not received.
Income from grants is divided in advisory services that CNVP team of advisors offers to
third party beneficiaries, and project expenses which are covered by donor contribution. In
projects with cost sharing such as the Sida projects, CNVP fulfils its financial contribution
by sharing in the costs of advisory services.
During the course of business in August 2014, CNVP was awarded two 4 year Sida project
contracts (Sida FLED & Sida SSPDF). The income for 2015 from Sida FLED project was €
1,147,563, of which € 773,238 comes from advisory services and € 374,325 from
recoverable project expenses. The income for 2015 from Sida SSPDF was € 584,056 from
which € 450,128 from advisory services and € 133,928 from recoverable project expenses.
The other projects range in small size and were financed by EU (TREES project) PEFC
(National SFM standards) and FAO. The implementation for these projects will continue in
2016.
In the following table the breakdown of income from grants for the period from 01 January
to 31 December 2015 is presented.
Actuals Budget Actuals
from 01 January
from 01 January
from 01 January
to 31
December
to 31
December
to 31
December
2015 2015 2014
Income
Income from grants EUR - EUR - EUR -
Project SIDA Fled - Advisory services 773,238 701,100
207,953 Project SIDA Fled - Reimbursable project
expenses 374,325 485,900
48,826
Subtotal 1,147,563 1,187,000
256,779
41
Project SIDA SSPDF - Advisory services 450,128 437,000 146,056 Project SIDA SSPDF - Reimbursable project expenses 133,928 150,000 22,963
Subtotal 584,056 587,000 169,019
Project SIDA Albania - Advisory services 0 0 140,112
Project SIDA Albania - Reimbursable project expenses 0 0 69,835
Subtotal 0 0 209,947
Project SIDA Kosovo - Advisory services 0 0 137,800 Project SIDA Kosovo - Reimbursable project expenses 0 0 82,598
Subtotal 0 0 220,398
Project World Bank PROFOR - Advisory services 0 0 27,713
Project World Bank PROFOR - Reimbursable project expenses 0 0 28,682
Subtotal 0 0 56,395
Other projects - Advisory services 27,716 36,600 9,570
Other projects - Reimbursable expenses 8,522 15,700 0
Subtotal 36,238 52,300 9,570
Total Income from grants 1,767,857 1,826,300 922,108
12. Other income
Other income consists in net proceeds generated by sale and or removal of assets, interest
earned on CNVP funds. Details are below.
Other Income
Net gain from sale of assets 15,416
29,000 100 Interest income from CNVP funds 259 0 15
Miscellaneous income 0 0 33
Subtotal 15,675
29,000 148
42
Note on the difference between actual and budget figures of income
The project income is with 96% realisation. The income from advisory work is higher than
planned since in the budget plan the investments were not accounted on the income side.
On the other hand project cost are lower than expected due to postponement of some
activities for next year and later payments. The income from sale of assets are lower than
planned due to overestimated income than the market demand and prices.
Expenditure
13. Personnel
CNVP had 25 fte at 01 January 2015, including the Executive Director. In May one
additional staff was recruited resulting 26 fte in CNVP at 31 December 2015.
The following can be stated about the remuneration of the Executive Director, Foundation
Board, Staff salaries and benefits, as well as other personnel related expenses.
Remuneration for Executive Director consists in salary earned, school fees paid as benefit,
as well as other benefits. Total remuneration for 2015 is € 133,015.
Board members receive no remuneration for their activities. They get compensated for
reasonable travel and business expenses they incur for the board meetings. Total expense
incurred for board meetings was € 6,594.
Actuals Budget Actuals
from 01 January
from 01 January
from 01 January
to 31 December to 31
December to 31
December
2015 2015 2014
EUR - EUR - EUR -
Personnel
Executive Director - salary 81,770 81,800 81,970
Executive Director - benefits (school fees) 49,461 45,000 44,579 Executive Director - other benefits 1,784 2,400 3,998
Subtotal 133,015 129,200 130,547
Board members -
remuneration 0
0
0
Board meetings 6,594
8,500 8,800
Subtotal 6,594
8,500 8,800
Staff salaries 563,771 567,900 523,713
Social security contribution
28,149 40,800
25,810
43
Pension premiums
2,996 5,600
2,950
Medical benefits
18,708 32,450
18,776
Other benefits & expenses
17,101 37,250
8,260
Outstanding Leave Days
(5,906) 0
10,397
Subtotal
624,820 684,000
589,906
External &Temporary Support
18,027 19,600
20,565
Total personnel expenses 782,456 841,300 749,818
14. Depreciation of tangible fixed assets
The following shows the details of the depreciation expense incurred for the period.
Actuals Budget Actuals
From 01 January
From 01 January
From 4 July 2012
to 31 December to 31 December to 31 December
2015 2015 2014
EUR - EUR - EUR -
Depreciation fixed assets
Depreciation vehicles
24,559 31,000
1,459 Depreciation office equipment
6,385 5,500
7,423
Total depreciation expense 30,944 36,500 8,882
44
15. Other expenses
Other expenses are comprised of operating business expenses and project expenses.
Actuals Budget Actuals
from 01 January from 01 January from 01 January
to 31 December
to 31
December to 31 December
2015 2015 2014
Other expenses
A. Operating expenses EUR - EUR - EUR -
Fuel & vehicle expenses
49,157 74,300
34,160
Travel & lodging
32,514 39,500
26,871
Office rent
66,794 69,500
66,598
Utilities & office maintenance
22,014 29,400
22,343
Communication & mailing
11,278 18,600
12,273
Office expense
50,015 48,000
29,242
Accounting & audit fees
27,698 35,200
40,431 Bank costs & x-rate differences
8,378 5,500
15,758
Other expenses
9,180 13,500
7,195
Subtotal 277,028 333,500 254,871
B. Project expenses
Programme Support
256,265 286,700
144,883
Local Capacity Building
239,805 257,100
43,745
Consultancy
21,205 107,800
56,335
Subtotal
517,274 651,600 244,964
Total operating expenses 794,302 985,100 499,835
Total expenditure 1,607,702 1,862,900 1,258,535
Note on the difference between actual and budget figures of expenditure
The operational costs are with 87% realisation from the project plan and it is effected from
the personnel, depreciation and operating expenses.
45
The personnel cost are lower than planned due decision of the MT not to recruited
additional person in Albania. Depreciation is lower due to later purchase of planned
vehicles. Operating expenses were lower than planned due to some of the operational
budget items cost were less than planned leading to less expenditure. The project cost are
less than planned due to postponement of some activities.
16. Result for the period
Result for the period consists in the balance of income and expenditure. This balance is get
appropriated in the capital account, one part as appropriated reserve for the project
vehicles and one part as general reserve for unrestricted use by the Foundation.
Actuals Budget Actuals
From 01 January
From 01 January
From 4 July 2012
to 31 December to 31 December to 31 December
2015 2015 2014
EUR EUR EUR
General reserve 1,909 (7,600) (336,279)
Appropriated reserve 173,921 0 0
Result for the
period 175,830 (7,600) (336,278 )
Note on the difference between actual and budget figures of result
The positive result is coming from not recruitment of one person, saving made in the
operating expenses and income from the project investments that was not accounted in
the original budget plan.
46
Constitution of the Board
In 2015 the governance structure of CNVP is reviewed and preparations made towards an
organisation with Board of Trustees and Supervisory Board. This new governance structure
is effective from January 2016 onwards. During 2015 CNVP governance structure
consisted of a Foundation Board and management with Executive Director.
During 2015 the Foundation Board consisted of:
Chairperson, CNVP Foundation Board
Mr Michel Farkas, appointed on 4 July 2012 – until 16 January 2016
Member, CNVP Foundation Board
Mr Arno Willems, appointed on 4 July 2012 – until 16 January 2016
Member, CNVP Foundation Board
Mr Aurel Jupe, appointed on 4 July 2012 – until 16 January 2016
Member, CNVP Foundation Board
Mr Maarten Bremer, appointed on 15 December 2013 – until 16 January 2016
Due to changes in the governance structure the current board is as follows:
CNVP Foundation Board Board of Trustees
Executive Director
Mr. Peter Kampen appointed on 16 January 2016
Supervisory Board
Chairperson, CNVP Supervisory Board
Mr Maarten Bremer, appointed on 16 January 2016
Other functions:
Dean, Academy of Part-time Studies,
Avans University of Applied Sciences in The Netherlands;
Member, CNVP Supervisory Board
Mr Michel Farkas, appointed on 16 January 2016
Other functions:
Managing Director Global Support Services / CFO at SNV Netherlands Development
Organisation in The Netherlands;
Board Member of Aertze ohne Grenzen (Doctors without Borders), Germany
Member, CNVP Supervisory Board
Mr Arno Willems, appointed on 16 January 2016
Other functions:
Steward (Head Forester) at Het Loo, Royal Estate in The Netherlands
Member, CNVP Supervisory Board
Mr Aurel Jupe, appointed on 16 January 2016
Other functions:
HR Manager at Simons Edeco Ltd in Albania
47
Other Information
Independent auditor’s report
Reference is made to the auditor’s report as included hereinafter.
Appropriation of result according to articles of association
The CNVP Foundation articles of association do not indicate specific requirements for
appropriation of the result. Appropriation of the results will be made by the Foundation
Board within the limits of the goals of CNVP as set in the articles of association.
Proposed appropriation of result for the financial year 2015
The Executive Director proposes, with the approval of the Supervisory Board of the
Foundation, that the result for the financial year 2015 amounting to EUR 175,830 will be
added for € 173,921 to the appropriated reserve and for € 1,909 to the general reserve.
48
Auditor’s Report
49
Working together to grow a canopy of trees providing home, shelter, food, a livelihood as well as a place to wander
CNVP, a The Netherlands based foundation, is a legacy organisation of SNV in the Balkans. Established through a legal demerger, CNVP continues the SNV forestry and rural development programme in the Balkans and beyond. CNVP envisions:
• Local communities achieving their own development goals;
• Maximising the production and service potential of forests through Sustainable Forest Management and locally controlled Natural Resource Management;
• Forests contributing to equitable local economic development supporting rural livelihoods;
• Forests contributing to wider societal interests and values including biodiversity conservation and wellbeing;
• Connecting natural values and people!
Connecting Natural Values & People
Dr Kuyperstraat 5, 2514 BA
The Hague, The Netherlands
T/F +31(0) 70 3440 145
www.cnvp-eu.org